Business Strategy
Overwhelmed business owners that have little to no strategic direction may not be clear on how they are going to grow the company or what moves they should make to improve revenue or profit margins. Other strategic challenges they may face include: How to take on larger projects given a company’s limited resources How to remain competitive How to determine the company’s valuation How to position the company to obtain equity or debt capital workflow distribution or organizational structure The KhironBae Business Strategy process involves identifying obstacles that compromise an organization’s goals. We then work with the management team to create a plan that focuses them on prioritizing and resolving those obstacles.
Growth Strategy
Growth companies can generally be defined as any business with increasing annual revenue which means they have year-over-year growth that outpaces the industry growth rate. While small companies may have double-digit revenue growth, that doesn’t mean they are ready to fully staff an accounting department or hire a full-time CFO. It does, however, usually mean they need help with how to manage the problems that come with fast growth. While each client’s growth needs will be different, most growing businesses typically need basic financial infrastructure–fast. At KhironBae we offer our growth client help with: Establishing and implementing financial policies Properly documenting revenue and expenditure costs Analyzing and interpreting revenue and cost trends Creating accountability records such as: custom monthly financial reports annual budgets quarterly forecasts regular cash flow projections We work with the organization to help determine important key performance indicators (KPIs) to benchmark and measure the company’s progress towards its main business objectives all the while keeping an eye on the cash flow. We evaluate the historical trends of the company to provide insight into specific financial achievements and misses. KhironBae helps its growth clients to gain better control of the financial side of their business and use that knowledge to make better strategic decisions with greater confidence.
Financial Structure
We bring structure to the company financials by applying specific guidelines to the accounting process. Where there is no accounting process, we create one based on Generally Accepted Accounting Principles (GAAP). We create financial reports, revenue models, financial forecasts and budgets to help emerging companies assess and keep track of their incoming and outgoing funds. Furthermore we support emerging companies by bringing order and consistency to their accounting data and working with their tax accountants, if necessary, to ensure uniformity between financial accounting (historical financial data) managerial accounting (forward-looking documents like budgets and revenue models) and tax accounting (any and everything related to filing local, state and federal taxes). We also assess the organization’s financial processes and then make recommendations for changes that will improve the financial position of the organization based on its current status in the growth cycle. Implementing a solid financial structure helps the executive team make more informed decisions.
Business Coaching We offer to coach to those looking to transition out of the corporate world and into an entrepreneurial one. Our business coaching clients usually have passion and excitement about their new venture, but they seldom know how to create an exit strategy or how to implement their own concept once they’ve left their full-time job. The KhironBae coaching plan helps prepare the client to get their business idea off the ground while they are still working. We also focus on helping the client become realistic about what it takes to build a viable business that pays the bills. Coaching plans usually require a three-month commitment and are based on the goals of the client.
Financial Models
Clients looking to raise capital for their ventures are usually start-up CEOs in the process of raising investor capital. Entrepreneurs looking to approach an investor (or bank) in order to raise funds typically need a financial model for an investor pitch and/or bank presentation. This client understands that the purpose of the financial model is to illustrate the economic details of the overall business strategy but lack the financial savvy to create the financials. KhironBae builds comprehensive and conservative financial models that include a three year forecasted profit and loss statement, balance sheet, cash flow statement and revenue model. If the company has been established for some time we use historical data to forecast the upcoming three years; if the company is a startup with no financial history, the financial assumptions are based on presumed information as opposed to historical data.
Financial Reporting
Resource Investors, equity firms, angels or super angels looking for financial reporting resources for any of their investment projects. This client is looking for financial support resources for companies that they are planning to fund or that they have already funded. They want a finance professional who can help the investee with financial accountability to the investment group. KhironBae can work with the portfolio firm to create various views of the monthly financial statements (BS, P&L and cash flow statement) as well as track relevant KPIs. We can also provide assistance with variance analysis and commentary for monthly financials, budgets, and forecasts.
Frequently Asked Questions
Q. Why should I hire a strategic Planner?
A. Simply put: for objectivity. Strategic planners help bring clarity to your goals while also helping you to articulate and prioritize your objectives. Entrepreneurs are often under a lot of pressure to make everything in the company work and work well. Very often they can’t do it alone. Hiring a strategic consultant to help figure out where the problems are hiding just makes sense. We’re able to help you focus on the solution and not the problem.
Q. I know what I want to do with my company, but I’m just not sure how to do it. How can you help me with that?
A. Our specialty is planning. Planning involves organizing and prioritizing ideas and resources in order to implement a strategy. We’re good at asking the right questions; pointing a light at the root of the problem and providing solutions that can help you clarify and articulate the goals you want to accomplish.
Q. Can you help me get a loan or raise capital from an investor?
A. We can’t guarantee that you will get a loan or that an investor will take on your project; however, we can work with you to position your company for commercial or investor financing by making sure that your financial statements are properly prepared and that you have conservative financial models that are necessary when trying to secure capital or when presenting at an investor pitch meeting.
Q. I have cash right now, but I’m not sure how long that cash is going to last. Can you help me figure that out?
A. Yes. By assessing your spending trends and anticipating the revenue we can create cash flow statements that determine cash needs over a period of time; including when you would run out of cash.
The Benefits of Clarity
The Focus: When you’re clear about what you want and where you’re going, it’s easier to stay focused on the important tasks and allows you to say no to those things that are less of a priority or irrelevant altogether. Clarity is essential to the success of any venture.
Walk the Talk Being able to articulate your vision and goals for your business to employees, partners and/or customers allows you to obtain more support for your venture . Being able to communicate your business “why” can help you identify more with your potential customer, employees and business partners.